Local Fiscal Decentralization And Region Economic Growth

Since the reform and opening up,China has taken a new look: China's national economy has been developing rapidly,the people's living standard has improved significantly,and the international status has been improved rapidly.This phenomenon has attracted many scholars at home and abroad to study China's development miracle.They have tried to explain China's long-years' s high growth miracle from multiple perspectives,theories and models.Among the various explanatory factors,China's unique institutional arrangements have become the focus.The reform of fiscal decentralization with Chinese characteristics is considered to be one of the most important factors affecting China's economic growth.China's economic growth is accompanied by changes and adjustments in the fiscal system.Based on the classical theory of fiscal decentralization and economic growth at home and abroad,looking back the changes of fiscal decentralization reform in China,we can make a conclusion that local fiscal decentralization has played a positive role in promoting regional economic development on the Investigation in Foshan City with the related economic data through the empirical analysis.This paper will try to seek effective fiscal decentralization system for economic growth of our country.With Chinese development of thirty-nine years,we can see that china changed from traditional planned economy to market economy gradually,cancelled the highly centralized system of comprehensive intervention in the economy policy step by step,government changed its role to provide service in a market economy that made a positive effect in the development of market economy.The local economic growth owes to the decentralization reform to a certain extent under the function of a series of market mechanisms and the implementation of fiscal decentralization reform is the key.Fiscal decentralization is one of finance systems established on the basis of the governmental functions or the governance,in line with the economic efficiency and fairness,showed the spirit of democracy,adopted the mode of democracy with the legal guarantee,given independent financial revenue and expenditure scope to governments at all levels,dealing with the relationship between central government and local government.In another words,It refer to give local government a certain scope of tax right and expenditure responsibility,allow local government to decide its budget expenditure scale and structure.The local government can make freely choice to select the policytype it needs,participate in social management actively,provide more and better services to the public,through rights allocation to achieve coordinated development in regional economy,essentially it is centralization and decentralization of the central and local government authority.In the mode of market economy,excessive decentralization or centralization can make serious negative effects,so the degree of decentralization is required to adapt to the level of economic development.There is an inevitable link between local fiscal decentralization and regional economic growth,which is also the focus of China's development finance.Foshan city has developed rapidly as a national economic leader with the advantage of its coastal geographical location,especially after the reform and opening up whose decentralization and regional economic growth is obvious.This paper is to explain the relationship between fiscal decentralization and regional economic growth by sampling the economic data of Foshan city under method of empirical analysis,supplement the research achievements of predecessors',trying to find the best development model and make some suggestions and comments.for our country's fiscal decentralization.